CPP (Canada Pension Plan) Investments Board has invested $205 million as an anchor investor in a new real estate fund of India’s leading investor, developer, and operator of grade A industrial real estate, Indospace. With earlier investments, this will bring the combined assets of the CPP investments and Indospace cooperation to above $1 billion. It marks the 1st close for ILP IV (Indospace Logistics Park IV) the company’s fourth development vehicle, which aims to raise $600 million of total equity commitments.
Over the past years, CPP investments have made numerous investments in India’s industrial space, where they see strong demand as the manufacturing sector continues to grow and the e-commerce sector matures. According to Hari Krishna V, MD, Head of Real Estate India, CPP Investments, the company is happy to be working with its persistent partner Indospace to further capitalize on opportunities in this space and believes this investment will deliver strong risk-adjusted returns for Canada Pension Plan contributors and beneficiaries.
CPP investments have made numerous investments in India’s industrial space
This is Indospace and CPP investment’s latest business venture. Their 1st joint venture, Indospace Core, was launched in 2017 and now acquired the largest portfolio of stabilized modern logistics assets in India. CPP investments have also invested in ILP III (Indospace Logistics Park III). The CEO and MD of Indospace Capital Asia said ILP IV will enable Indospace to continue to expand its distinctive national network so it can better serve its customers. Logistics infrastructure and Industrial is an important enabler of economic growth. He added Indospace is excited to extend its partnership with CPP investments. CPP investments’ commitment to Indospace Logistics Park IV is a testament to Indospace’s leadership in the industrial and logistics real estate space in India.
Indospace Logistics Park IV will increase its portfolio by 25-30 million sq ft, furthering its leading position in the Indian market. Indospace Logistics Park IV will focus on the country’s largest logistics real estate markets including Pune, Mumbai, Ahmedabad, Hyderabad, Bangalore, Delhi, Kolkata, and Chennai. The establishment of Indospace Logistics Park IV follows from the first 3 development funds, which hold a total of 56 million sq ft of modern logistics real estate in India.
Due to increasing consumer demand and accelerated industry investment, industrial and warehousing have become a high-growth asset sector in real estate. The government’s newly announced NLP (National Logistics Policy), is expected to give a further boost sector’s investment. Due to the aggressive rise of e-commerce and the expansion of 3PL (3rd party logistics) businesses, the warehousing industry is expected to record the highest-ever absorption of space this year.
Against this backdrop, numerous estimates show that around $13 billion funds are required for the development of new warehousing capacity in India over the next ten years. Given the market opportunity, a strong warehousing and logistics infrastructure that meets global standards can benefit to attract investment in the country and facilitate greater trade in the region, driving competitiveness.
Indospace Logistics Park IV will increase its portfolio by 25-30 million sq ft, furthering its leading position in the Indian market
The CPP investment board is a reputed investment management company, which manages the fund of nearly 21 million contributors and beneficiaries of the Canada Pension Plan. To create a diversified portfolio of assets, it invests globally in real estate, private equity, public equity, fixed income, and infrastructure.
Indospace is a Joint venture between Everstone Group, a Southeast Asia and an India – focused private equity and real estate investor, GLP and Realterm, a worldwide industrial real estate group with headquarters in the United States. It has the largest national network of fifty logistics parks with 56 million square feet and is under development across Ten important cities.